When you’re managing a frugal lifestyle, it can be difficult to let yourself splurge or know when it is appropriate to do so. There may be a certain pressure you feel to seek permission from someone who is more familiar with finance and budgeting than you, which is perfectly fine and smart!
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To help you determine what you, a frugal person, should feel OK splurging on, GOBankingRates has rounded up insights from both financial experts and a retail pro, the latter of whom can point most efficiently to specific types of products that are worth the extra money — even when you’re on a tight budget and keen on minimizing spending.
Healthcare costs are among the biggest sources of debt in the U.S., but you can often succeed in staving off some of that debt from unexpected medical emergencies by enrolling in an expensive healthcare plan.
“While some may not consider it a ‘splurge’, paying for good health insurance and healthcare needs to be a priority for everyone, even those on tight budgets,” said Jay Zigmont, PhD, CFP, founder of Childfree Wealth. “If you don’t take care of your health, or don’t get regular checkups, you are likely to have a larger bill in the future. If the choice is between paying for an expensive med that helps you and other discretionary spending, health should win.”
For some controversial — but hopefully useful — insight in this arena, consider what Robert R. Johnson, PhD, CFA, CAIA, professor of finance, Heider College of Business, Creighton University, has to say on the value of splurging on that daily latte.
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“One of the biggest targets of individuals chastising people for unnecessary expenses is the daily latte purchase — a purchase that Suze Orman abhors. But, for some individuals, that daily latte purchase brings them a great deal of pleasure. Quite often, it is more about a sense of community and fellowship than a caffeine fix. For many the time spent at the local coffee shop is about interacting with friends and is an important part of their day.”
A Hobby You Love
We spend so much time working and thinking about work. When you find a hobby that sparks passion in you, it’s wise to make room in your budget for a little splurge on it here and there.
“One thing that I would always say is ‘acceptable’ to splurge on is simply something that adds real value to your life,” said Yasmin Purnell of The Wallet Moth. “If you have, for example, a hobby, subscription, weekly treat or similar expense that brings true joy and value to your life, you should keep that expense in your budget at all costs.”
Of course, keep splurging here within reason. “If you have a 5-figure hobby and a 4-figure budget, you may need to make adjustments,” Purnell said. “But splurging on something that makes a genuine, positive difference to your lifestyle is always worth it.”
Purnell also offers up the following reminder that may help you feel better about a little splurge now and again: “Frugal living isn’t about spending less — it’s about spending smarter and analyzing what adds value to your life, and what simply takes up financial space.”
Timeless, High-End Fashion Pieces
Some fashion items, particularly those by high-end designers, can retain their resale value over time. As such, it can be wise to splurge on these when your budget permits.
“While it’s important to be mindful of fashion expenses, splurging on a few timeless, high-quality pieces can be a smart move,” said Samantha Landau, consumer expert at TopCashback USA. “These items tend to last longer, offering better value for money over time. Investing in well-made, classic wardrobe staples can save you from frequent replacements, contributing to a more sustainable and cost-effective approach to fashion.”
A Quality Mattress
The importance of a good night’s sleep cannot be overstated. It’s essential for a healthy brain and a healthy mind, not to mention productivity and mood. So, it’s worth it to splurge on a quality mattress.
“Given the significant impact that a good night’s sleep has on various aspects of well-being, purchasing a high-quality mattress is an important decision,” Landau said. “Plus, a quality mattress lasts longer, so you won’t have to keep buying new ones, saving you money in the long run. It’s a smart choice for your well-being and your wallet.”
Good Kitchen Knives
A set of great kitchen knives should not be reserved for chefs and foodies. Anyone who spends any time in the kitchen can really benefit from one.
“One of the main ways to cut costs is by cooking at home, and having quality kitchen knives can drastically improve this experience,” Landau said. “Having high-quality knives will encourage you to spend more time in the kitchen, and adds enhanced safety to your cooking.”
And there’s a saving-time factor at play here, too. “Having effective knives can cut prep times down making a more efficient experience,” Landau said.
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This article originally appeared on GOBankingRates.com: Finance Experts: 6 Things Even Frugal People Splurge On
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